BACB INVESTOR PRESENTATION August, 2009 WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4
BACB SHARES Issuer Bulgarian American Credit Bank AD (BSE Ticker: 5BN, previously BACB) Listing Bulgarian Stock Exchange (Sofia), since April 4, 2006 ISIN BG1100098059 Codes BACB.BB (Reuters); BACB BU (Bloomberg) Credit Ratings BB-/Negative/B by S&P # of Shares 12,624,725 WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 49.99% - Allied Irish Banks; 30.9% - GEMF, 17.5% - institutional; 1.6% - Share Ownership retail Analyst Coverage Marfin Analysis, Member of ESN; FFBH; http://research.ca-ib.com Veneta Ilieva T (Direct): +359 2 9658 389 Investor Relations Officer T (Main): +359 2 9658 390 Contact F: +359 2 9445 010 16 Krakra Str. Information Sofia, 1510 E: vpilieva@bacb.bg www.bacb.bg/en/investors.php 1
BACB STRATEGY Achieve sustainable growth in assets and profitability: � Focus on providing secured finance to SMEs � Maintain low operating costs � Diversify sources of funding WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 � Stay ahead of the pack through innovation � Gain advantage through staff education, experience and motivation � Weigh risk against reward … and negotiate 2
COST OF FUNDING 6.6% 5.9% 5.4% 8.0% 5.1% 5.0% 4.5% 7.2% 6.9% 6.8% 4.4% 5.6% 6.5% 5.3% 6.4% 6.0% 6.2% 5.8% 5.5% 5.1%4.1% 4.1% 4.0% 5.2% 4.8% 3.3% 3.3% 2.9% 2.9% 2.9% 2.7% 2.5% 2.3% 2.2% 2.1% WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 2003 2004 2005 2006 2007 2008 H1'2009 Deposits from banks Deposits from clients Other borrowed funds Debt securities outstanding Average cost of funds � First mortgage bond (2001): approx. 330 bps over 3 year swap in 2001 � Last mortgage bond (July, 2008) – 3 years: approx. 220 bps over 3 year swap � Last corporate bond (July, 2008) – 2 years: approx. 190 bps over 6 month LIBOR Source: BACB 3 N.B. Average interest rates are calculated on the basis of management accounts, using monthly balances
LOAN PORTFOLIO: BREAKDOWNS AT JUNE 30, 2009 Portfolio breakdown by industry Portfolio breakdown by maturity Portfolio breakdown by industry Portfolio breakdown by maturity Matured on Real estate June 30, 2009 Other construction 10.2% Other light 8% 5+ yrs 21% Up to 1 month industry 15.5% Mortgage 3.6% 4% Loans - Residential 8% Garments and 3 to 5 yrs Entertainment 8.4% textiles and Recreation 2% 4% WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 1 to 6 mos Mortgage Real estate 24.6% Loans - investment & Commercial Land 13% Development 1 to 3 yrs 21% 22.8% Retail Trade 2% Primary 6 to 12 mos Hotels agriculture & 14.9% 14% Farming 2% BACB Portfolio Only BACB Portfolio Only 4
ASSET QUALITY AND RISK MANAGEMENT High collateral � Over 90% of the loan portfolio value secured by real estate coverage � Provisions for impairment at June 30, 2009: Conservative €28.2 million provisioning 7.5% of gross loan portfolio policies � Provisions: in the range of 4.5% - 7.5% of gross loan portfolio for the last three years � € 35.5 million at June 30, 2009 Loans in arrears of over 90 days � Loans in arrears of over 90 days/Total Loans: 9.4% WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 � Write-offs Write-offs for H1’2009: € 0.2 million (2008 - € 0.24 million) � Largest exposure to a single client group: €14.2 million (including €0.8 million off-balance sheet commitments) 15.4% of capital base (not including current year profit) Large exposures � Aggregate of the five largest exposures: €55.5 million (including €5.9 million off-balance sheet commitments) 5 56.0% of capital base (not including current year profit)
SUMMARIZED FINANCIAL PERFORMANCE Total assets Loan portfolio, gross Total assets Loan portfolio, gross EUR ‘000 CAGR (2001 – 2008) 31% EUR ‘000 CAGR (2001 – 2008) 29% 368,803 377,866 418,580 404,129 317,420 357,756 248,520 206,182 194,903 157,604 153,092 122,170 94,519 109,337 87,376 72,183 2002 2003 2004 2005 2006 2007 2008 H1'2009 2002 2003 2004 2005 2006 2007 2008 H1'2009 Source: BACB’s Consolidated Financial Statements Source: BACB’s Consolidated Financial Statements Net Interest Margin Net income Net Interest Margin Net income EUR ‘000 CAGR (2001 – 2008) 50% 27,157 26,462 WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 12.4% 11.3% 11.4% 11.3% 10.7% 10.5% 10.6% 9.2% 17,455 12,341 12,128 7,209 4,645 3,545 2002 2003 2004 2005 2006 2007 2008 H1'2009 2002 2003 2004 2005 2006 2007 2008 H1'2009 Source: BACB’s Consolidated Financial Statements Source: BACB’s Consolidated Financial Statements Net interest margin remains high Net income decreased 23.4% (June’09 – June’08) 6
SUMMARIZED FINANCIAL PERFORMANCE (CONT’D) In EUR ‘000 June 2009 2008 June 2008 Change (June’09 – June’08) Interest Income 29,033 56,534 27,389 6.0% Interest Expense (6,722) 13.1% (7,603) (15,794) Net Interest Income 21,430 40,740 20,667 3.7% Net fee & commission income -78.5% 279 1,949 1,297 Other operating income, net 343 291 443 -22.6% Operating Income 22,052 42,980 22,407 -1.6% Operating Expenses (3,274) (6,005) (3,101) 5.6% Operating Profit -2.7% 18,778 36,975 19,306 Impairment of financial assets (1,577) 237.4% (5,321) (7,590) Income before taxation -24.4% 13,457 29,385 17,792 WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 Net Profit -23.4% 12,128 26,462 15,832 Total Assets 404,129 418,580 398,863 1.3% Loans and advances to customers, net 349,660 345,763 333,505 4.8% Shareholder’s Equity 108,037 96,097 85,711 26.05% ROAE 23.8% 30.1% 38.3% ROAA 5.9% 6.8% 8.4% Cost to Income 14.9% 14.0% 13.8% Tier I Capital Ratio 22.2% 16.9% 17.6% Rating BB-/Negative/B BB+/Negative/B BB/Positive/B Shares Outstanding 12,624,725 12,624,725 12,624,725 7 EPS (Euro per share) 0.96 2.10 1.25 Source: BACB’s Consolidated Financial Statements,
SUPPORTING MATERIALS 8 WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4
OVERVIEW AND CORPORATE HISTORY Background: � Established by the BAEF, December 1996 � Limited purpose license: allowed to grant credits only from shareholder funds � SME and Tourist Lending Programs launched as extensions of BAEF’s operations � Substantially full banking license � First IFI financing � Mortgage lending program launched WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 BAEF-AIB Transaction � Bulgaria’s first mortgage bond issue � Construction lending program launched � Mobile lending launched � Bulgaria’s first loan securitization � Listing on the BSE; Public Offering 1996 1998 1999 2001 2002 2004 2006 2008 1996 1998 1999 2001 2002 2004 2006 2008 9
DISTRIBUTION CHANNELS � Head office in Sofia � Larger or specialized loans � Credit risk management � Expertise sharing � Four other offices in major Bulgarian cities � Mobile lending WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 � Network covering 15 cities � Small business and mortgage loans � Maintain low operating costs 10
RATING HISTORY S&P Credit Rating S BB/B BB/B BB/B BB+/B & P C r e BB-/B BB-/B d i t R a WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 B+/B B+/B B+/B t i n g 2000 2002 2004 2006 2008 2010 Year of Announcement Source: S&P, BACB 11
COST EFFICIENCY AND PRODUCTIVITY Net income, assets and loans per Net income, assets and loans per Cost to income ratio (%) Cost to income ratio (%) employee benchmarks (Dec. 2008) employee benchmarks (Dec. 2008) BACB Banking system BACB Banking system set to 1 8.5 x 62 58 56 55 50 49 32 WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 25 23 3.2 x 19 2.6 x 16 14 1 x 1 x 1 x Source: BNB reports, BACB calculations, 2004 data 2003 2004 2005 2006 2007 2008 Source: BNB data - unaudited financial statements of commercial banks in Bulgaria Source: BNB data - unaudited financial statements of commercial banks in Bulgaria BACB compared to the banking system averages BACB employees at December 31, 2007 – 146; Banking System Employees 31,000 Low cost to income ratio And high productivity 12
MANAGED COSTS Operating expenses / average earning Interest expenses / average interest bearing Operating expenses / average earning Interest expenses / average interest bearing assets*: BACB vs Banking system liabilities*: BACB vs Banking system assets*: BACB vs Banking system liabilities*: BACB vs Banking system BACB Banking system BACB Banking system 6.33% 5.70% 5.20% 5.49% 5.27% 4.90% 4.40% 4.33% 4.33% 3.56% 3.76% 3.50% 3.10% 3.00% 2.90% 2.88% 2.77% 2.41% 2.51% 2.38% WorldReginfo - ef600a6e-b91f-42fb-9649-846fe5b1a4f4 2.04% 2.08% 1.98% 1.57% 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 *Interest bearing liabilities includes deposits, debt securities and other borrowed funds. *Earning assets include loans and advances to customers, interest-earning securities, Based on beginning and ending balance of interest bearing liabilities as published by BNB held with other financial institutions and investments in securities Source: BNB reports and BACB’s own calculations Source: BNB reports and BACB’s own calculations Stable funding cost Increasing operating leverage 13
Recommend
More recommend
